Reference no: EM133174765

Questions -

Q1. Assume all residential real estate improvements are capitalized over 26 years. Five years ago, Kelly purchased a home in Queens, New York to rent to her college roommate, Linda. Things had gone well with this investment until this year when Linda insisted several "small problems" be addressed. Because Kelly wanted to keep Linda as a tenant, she told Linda to make arrangements to have the problems corrected and to send her the bill. Kelly was surprised when the bill which included: $449 to repair outside lighting, $1,203 to repair the bathroom floor tiles, $17,670 to replace the sewer line, $3,965 to paint the house, and $1,489 to repair leaking faucets. When Kelly confronted Linda about these costs, Linda pointed out that all these costs would reduce Kelly's tax bill. Based on the above information, how much will Kelly be able to deduct as a result of these costs?

Q2. Mike purchased a $1 million apartment complex on June 1, 2020. The total real property taxes for this property in 2012 are $35,000. What is Mike's real property tax in 2020?

Q3. Emily purchased a house for $384,000. She made a 20% down payment and received a 30-year mortgage at 4.21% plus 2 points. What is the total cash needed for this transaction including the down payment and the points?